Question
2. You have two job offers with the following 6-year compensation terms: the first one offers you $80,000 a year for the next 6
2. You have two job offers with the following 6-year compensation terms: the first one offers you $80,000 a year for the next 6 years; the other one offers you a signing bonus of $15,000 plus $50,000 a year for the first 4 years and then 60,000 a year for the last two years. Assume that the appropriate discount rate is 12% and there are no taxes. a. How much would you lose in present value if you accepted the second offer? b. Propose a change to the second offer that would make you indifferent between the two offers.
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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